IPSE warns about risk to freelancers from record inflation

IPSE has responded to the five-year inflation high reported this morning, warning of the risk to freelancers across the UK.

The elevated rate of three per cent reported by the ONS will put particular pressure on freelancers, it has said, because of their above average transport costs.

Tom Purvis, IPSE’s Economic Policy Advisor commented: “This increase means freelancers and others across the UK will now feel even more of a squeeze as their earnings fall further behind the cost of living. Rising fuel costs will also be a particular blow for the many self-employed people who have to commute long distances to work. And with the cost of train tickets climbing to an even higher rate, they will be left with no choice but to take the hit from rising petrol prices.

“This new inflation high will also put more pressure on the already heated debate about interest rates. With the next decision due on 2 November, it’s looking increasingly likely they will raise interest rates in the short term.”